Bitcoin Faces Potential 50% Correction, Warns Tom Lee

2 mins mins

Key Points:

Tom Lee forecasts a potential 50% correction in Bitcoin.
Bitcoin’s volatility linked to stock market patterns and institutional activity.
Community divided on Bitcoin’s future amid market adjustments.

Tom Lee, Chair of BitMine and co-founder of Fundstrat, predicts a 50% downturn for Bitcoin following recent stock market corrections, as discussed on October 25th with Anthony Pompliano.

Lee’s warning highlights Bitcoin’s continued vulnerability to stock market shifts, despite institutional engagement, raising investor concerns about volatility in the crypto market.

Historical Corrections and Market Insights on Bitcoin’s Future

In a recent interview, Tom Lee, Chair of BitMine and co-founder of Fundstrat, forecasted a probable 50% correction in Bitcoin. He noted that the stock market has experienced frequent 25% corrections, highlighting increased volatility. According to Tom Lee, Chair of BitMine: “If the S&P is down 20, Bitcoin could be down 40.”

Bitcoin’s relationship with the stock market presents immediate implications. Despite record institutional flows and the introduction of spot Bitcoin ETFs, Lee asserts that institutional entry hasn’t eliminated volatility. He emphasized that despite Wall Street’s involvement, Bitcoin remains vulnerable to significant market shifts.

The community’s reaction was divided, with veteran trader Peter Brandt agreeing with Lee’s assessment by comparing Bitcoin’s current patterns to past significant corrections. Meanwhile, Michael Saylor of MicroStrategy countered this perspective, suggesting limited downside risks for Bitcoin, stating, “Winter is not coming back,” reiterating his bullish position.

Market Data and Insights

Did you know? The last time Bitcoin experienced a 50% correction was during the 2021-2022 cycle, which catalyzed a significant reevaluation among institutional investors and led to strategic portfolio adjustments.

Bitcoin (BTC) is trading at $110,346.74, with a market cap of $2.20 trillion and a dominance of 59.29%, as reported by CoinMarketCap. Recent trading volumes showed a decline of 13.43%. Bitcoin’s price changes include a 0.43% gain over 24 hours and a 3.34% increase over 7 days.

bitcoin-daily-chart-3925 — Bitcoin(BTC), daily chart, screenshot on CoinMarketCap at 16:31 UTC on October 24, 2025. *Source: CoinMarketCap*

According to Coincu’s research, historical patterns suggest a potential for significant corrections in speculative channels, particularly amidst regulatory adjustments. Lee’s call aligns with broader concerns regarding Bitcoin’s vulnerability to macroeconomic factors, despite robust institutional interest and continued blockchain development.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.